Interest Rates

Lending Rate Memorandum — December 8, 2017

Listed below are the Illustrative Lending Rates (ILR) used by the Texas Water Development Board, as of the above date and assuming a level debt service. Actual rates will vary depending on length, time of closing and structure. Rates are for illustrative purposes only. Contact TWDB staff at (512) 463-6690 for lending rate scale or other inquiries.

The ILR listed below are subject to change and availability of funds. These rates are listed for comparative and marketing purposes only.

Based on Development Fund taxable rate; will vary if Rural Water Assistance AMT funds are available

Borrower's rates for Clean Water and Drinking Water SRF loans will depend upon the entity's corresponding rating.

Loan origination fee (on funds other than principal forgiveness) – For loans committed under the SFY 2018 Intended Use Plans (IUPs), the Clean Water SRF program includes a loan origination fee of 1.75% of principal and the Drinking Water SRF program includes a loan origination fee of 2.15% of principal. For projects committed under the SFY 2017 and prior IUPs, the CWSRF program includes a loan origination fee of 1.85% of the principal and the DWSRF program includes a loan origination fee of 2.25% of the principal. For multi-year commitments, the portion of the total commitment associated with SFY 2018 will receive the new loan origination charges contained in the SFY 2018 IUP.

Represents the interest rate subsidies available for loans committed under the SFY 2018 IUP. For loans committed under the SFY 2017 IUP and prior IUPs, the CWSRF subsidies are 1.55% for Equivalency projects and 1.20% for Non-Equivalency projects. For DWSRF loans committed under the SFY 2017 IUP and prior IUPs, the subsidy is 1.25%. For multi-year commitments, the portion of the total commitment associated with SFY 2018 will receive the new interest rate subsidies contained in the SFY 2018 IUP. A limited amount of CWSRF Emergency Relief and DWSRF Urgent Need funds may be available under the SFY 2018 IUP with an additional 100 basis-point interest reduction.